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I need help solving these problems please Martin Inc. has outstanding accounts receivable totaling $1.2 million as of December 31, and sales on credit during
I need help solving these problems please
Martin Inc. has outstanding accounts receivable totaling $1.2 million as of December 31, and sales on credit during the year of $13 million. There is also a debit balance of $27,000 in the allowance for doubtful accounts. If the company estimates that 8% of its outstanding receivables will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense? Cinder Corp factored, with recourse, $150,000 of accounts receivable with Greedy Financing. The finance charge is 3%, and 5.5% was retained to cover sales discounts, sales returns, and sales allowances. Cinder estimates the recourse obligation at $1, 750. What amount should Cinder report as a loss on sale of receivables? Lakeland Inc. factors $950,000 of its accounts receivables with Greedy Finance on a without recourse basis for a finance charge of 4.5%. The finance company retains an amount equal to 5% of the accounts receivable for possible adjustments. Prepare the journal entry required on Lakeland's books. Given the above information, prepare the journal entry for Greedy's books. Lakeland Inc. factors $950,000 of its accounts receivables with Greedy Finance on a with recourse basis for a finance charge of 4.0%. The finance company retains an amount equal to 5% of the accounts receivable for possible adjustments. The fair value of the recourse liability is estimated at $25,000. Prepare the journal entry required on Lakeland's books. On July 4, Freedom sold $95,000 of inventory items on credit with the terms 2/10, net 30. Payment on $45,000 of the sales was received on July 10 and the remaining payment of $50,000 sales was received on July 30. Assuming Freedom uses the net method of accounting for sales discounts, record the entry on July 30. On May 15, Brandie sold $52,000 of inventory items on credit with the terms 2/15, net 30. Payment on $30,000 of the sales was received on May 28 and the remaining payment was received on June 12. Assuming Brandie uses the gross method of accounting for sales discounts, what is the journal entry made on May 28Step by Step Solution
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